Nigeria is planning to create a blockchain system to enhance its data security and promote “data sovereignty.” Dubbed “Nigerium,” this blockchain will be developed by the National Information Technology Development Agency (NITDA).

However, a NITDA spokesperson told Decrypt on Monday that there is no specific timeline for the development and implementation.

“The committee is still discussing this possibility with stakeholders,” said Hadiza Umar, head of external relations and corporate communications at NITDA. “Even if a final decision is made, there is no guarantee that the name will be Nigerium.”

Nigerium is expected to address challenges related to data security and transparency, providing a means for more secure and efficient transactions. The blockchain will “ensure secure and transparent transactions across various sectors,” said NITDA Director Kashifu Inuwa.

It could play a crucial role in Nigeria’s digital economy, fostering initiatives in finance, healthcare, and public services. The country’s crypto industry is estimated to be worth $400 million.

The launch of Nigerium aligns with Nigeria’s national blockchain policy, which aims to promote a robust digital economy. Nigeria initiated its national blockchain policy last May. This policy will “create a blockchain-based economy that supports secure transactions, data sharing, and value exchange between people, businesses, and the government,” according to Nigeria’s Ministry of Communications and Digital Economy at the time.

This plan contrasts with the country’s previous crackdowns on the digital asset industry. The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission have warned at various times that the anonymity of virtual currencies could encourage fraud, terrorism financing, and wild price volatility.

The initiative follows the country’s growing interest in blockchain technology, evidenced by previous efforts to regulate and integrate digital assets into the economy. The national securities regulator has set a deadline at the end of July for crypto companies to register or face enforcement action.

“Developing an indigenous blockchain like Nigerium is a significant step towards achieving data sovereignty and building trust in digital transactions in Nigeria,” said Chanu Kuppuswamy, a blockchain expert at the University of Hertfordshire’s School of Law.

Kuppuswamy led a team from various universities that proposed the idea of developing this blockchain. She argued that Nigerium would allow Nigeria to adapt the technology to its needs and be built according to the country’s existing laws.

The development of Nigerium is also seen as a strategic move to reduce reliance on foreign blockchain technologies. However, Umar emphasized that the blockchain developed will not necessarily focus on data sovereignty.

“Instead, measures will be implemented in the final blockchain solutions to maintain data sovereignty,” she told Decrypt.

Source: Tapchibitcoin